Regarding the Backflip closure, Space Ape has released a statement saying "we wanted to assure you and the fans that day to day operations of Transformers: Earth Wars won't be affected. The game has been operated entirely by Space Ape for many years so the changes won't have any impact on the game or its players. The GI Joe release will go ahead as planned and players will be able to enjoy the game for years to come".

I haven't heard anything about the update breaking the game though.